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ABy Admin
Nov 26'23

Exercise

How long does it take for a fund to grow to four times its original value if growing at an annual rate of 7%?

  • 7
  • 10.25
  • 16.24
  • 20.5
  • 28

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

ABy Admin
Nov 26'23

Solution: D

[math]1.07^n=4[/math] so [math]n \ln (1.07)=\ln (4)[/math] so [math]n=\ln (4) / \ln (1.07)=20.48954[/math] years.

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

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